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Builders insurance is an essential component when contracting with a builder on any renovation or building.
It is an important factor for builders and (in Australia) they are required to show proof of this when registering with the Building Practitioners Board.
The insurance offers protection for the consumer, in the event for example that a builder dies or becomes insolvent or disappears or simply can't finish the building project.
In Victoria for example, Builders Warranty Insurance is required by any domestic builder who enter a contract, and where the price for the work is more than $12,000 AUD.
Be sure to check your local state authority for your local information. Do not believe a builders word when they say they have it, requirethat your builder provide proof.
Public Liability Insurance protects against legal liability resulting from claims and is also required by people such as Demolishers (low rise buildings, medium rise buildings and unlimited) and erector or supervisor of any temporary structures.
Another issue to investigate is Professional Indemnity Insurance. Professional Indemnity Insurance indemnifies the practitioner against legal liability resulting from any claims. This insurance is required by professionals such as building surveyors, engineers, draftspersons, building inspectors, quantity surveyors, and architects.
Structural Defects or Builders Indemnity Insurance is required by all commercial builders (unlimited) and covers for structural defects .
See handy tips that apply for building and renovation and hiring contractors.
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